Indivior (LON:INDV), the spin-out from Reckitt Benckiser (LON:RB.) focused on treating addiction, today got the thumbs up from not one but two city brokers.
Deutsche Bank outlined long-term forecasts (through to 2025) as it upgraded its recommendation to ‘buy’ and lifted its price target to 300p from 250p.
The German bank says Indivior has a unique earnings profile, and highlighted a long term development pipeline that accounts for 65% of its valuation.
It is also worth noting that Deutsche’s base case conservatively assumes ‘a negative scenario’ for the launch of Indivior’s Suboxone film product until 2018.
Suboxone film, a strip applied under the tongue to suppress opioid withdrawal symptoms, is currently approved in the US, Australia and Malaysia.
Jefferies, meanwhile, repeats its ‘buy’ and similarly raises its target to 300p. Analyst James Vane-Tempest highlights a ‘strong first half’ as reasoning for the upgrade and points to an upcoming seminar in October which he expects will improve visibility of the group’s pipeline.
Hikma Pharmaceuticals (LON:HIK) was upgraded by Bank of America Merrill Lynch to ‘neutral’ from ‘underperform’ due to its consolidation of generic drugs sector, via a US$1.1bn deal for US rival Roxane.
Taylor Wimpey (LON:TW.) had its price target upgraded to 231p from 210p by Deutsche Bank, which already rates the house builder as a ‘buy’.
French bank Societe Generale upgraded Tate & Lyle (LON:TATE) to ‘buy’ from ‘hold’.
Elsewhere there were very few downgrades, albeit several price targets were revisions slightly lower; for example Tullow Oil’s (LON:TLW) was clipped by no fewer than three blue-chip brokers after yesterday’s production update.
Vedanta (LON:VED), meanwhile, was downgraded by Bank of America Merrill Lynch to ‘neutral’ from ‘buy’.